HUCK FINN FURNITURE OPENS
8,500 SQ. FT. CAPEL STORE-IN-STORE


Entrance to Huck Finn's 8,500 sq. ft. Capel Gallery

By Lissa Wyman

ALBANY, NY-Huck Finn's Warehouse & More has opened an 8,500 sq. ft. Capel Rug store within its 400,000 sq. ft. home furnishings complex.

Jeff Sperber,  president of Huckleberry Finn, Inc.,  worked closely with Capel executives for three months to create the  store-within-a-store, which opened March 24. 

The gallery contains "the core of the Capel line," with retail prices ranging from $99 to $1,900 for 6 x 9 size,  according to Bud Young, vice president of marketing for Capel.

The gallery is stocked exclusively with Capel products, with its own dedicated staff. It is adjacent to the store's regular 3,000 sq. ft. rug department.

Huck Finn's also houses several furniture galleries, including a 10,000 sq. ft. Bassett store, a 6,000 sq. ft. Broyhill store and a 2,500 sq. ft. Natuzzi store.
 
Huck Finn has sold Capel rugs for more than 24 years. During that time, the company has carried a large selection of Capel rugs within its regular 3,000 sq. ft. rug department.
 
"We've had a lot of success with the rug category,€VbCrLf said Sperber. "Our customers want to step into a store and know they can buy a rug for every room of their house.€VbCrLf

Sperber noted that Capel also provided assistance with employee education and training and offers an advertising program that includes print and television ads and direct mail. "All the elements of operating a successful retail operation are in place,€VbCrLf he said. 

"The Capel shop has been merchandised to the hilt, including a great deal of life-style signage and a  kids' department that includes a play area complete with a school bus," Young said.

Kids gravitate to this lifestyle area, which includes a 20 passenger bus within the Capel store.

The Huck Finn gallery is the latest in Capel's  In-Store Gallery Program, a marketing concept which Capel is aggressively pursuing for furniture stores, rug and floor covering specialists, according to Young.

The program offers customized design for galleries from 3,000 to 15,000 sq. ft.

The program also includes print and television advertisements, direct mail, newspaper inserts and
online-ordering on Capel's B2B web site.

 But the bottom line is that the retailer owns the gallery, not Capel, Young stressed.

"The in-store gallery represents a true partnership with the store owner," said Young. "We provide a great deal of help in terms of merchandising units, signage, and help in developing the proper merchandise mix based on local demographics. But we also expect a commitment from the store," he said.

"We do not provide consignment merchandise. The retailer owns the stock," said Young, adding that the retailer's investment runs from approximately $150,000 to $500,000, depending on the size of the gallery.
 

Huck Finn president Jeff Sperber, second right, with,
from left, Capel owners Jesse, Leon and Arron Capel.

The Huck Finn Capel gallery is the fourth Capel store-within-a-store to open within the last couple years. Other Capel galleries include a 4,000 sq. ft. unit in Gerondale's in Green Bay, WI;  a 5,000 sq. ft. gallery in Furniture Options in Goshen, NY,  and a 7,500 sq. ft. gallery in Burgan's in Spokane, WA.

"The in-store galleries are exceeding expectations and we have several new partnerships in development now," said Young.

Capel is not a newcomer to the Gallery approach to merchandising. In the mid-80's the company opened many Capel galleries in furniture and floor covering stores around the country. "Most of those galleries were about  1,000 sq. ft. They were good for their time, and some are still in operation. Now it's time to expand on that concept," said Young.

Capel has also been involved in company-owned and franchized Capel Outlet stores. Currently the company owns nine such stores and franchizes three. The free standing stores measure approximately 13,000 sq. ft.

"The Capel Outlet stores are in areas where Capel does not have a great deal of market penetration. The purpose of those stores is to flush out our system of over-stocked merchandise," said Young. He added that when a Capel Outlet is planned for an area, the company discusses the impact of such a store with existing customers in the area.

"We are also looking into expansion in free-standing Capel Outlets, but we feel the real growth is with the in-store Gallery approach," said Young. "The galleries offer a broad selection of merchandise and the opportunity to generate more sales per square foot by cross-merchandising with other categories."

Young added that furniture stores can achieve about $200 to $300 per sq. ft. using the gallery approach to cross-merchandising. The national average for furniture stores is approximately $150 in sales per sq. ft.

4.24.07